Good news for tax-exempt organizations: You don’t have to file Form 4626 for tax year 2023. This form is used to report liability for the corporate Alternative Minimum Tax (AMT), created by the Inflation Reduction Act. There has been some ambiguity about whether tax-exempt organizations can be considered corporations subject to the corporate AMT. Regulations proposed on Sept. 14, 2024, provided guidelines for determining eligibility for the tax, but they didn’t take into account certain circumstances of tax-exempt organizations. So for now, not-for-profits are instructed to simply “maintain” Form 4626 in their books to document any potential corporate AMT liability.
Our Blog 